Financial Data and Key Metrics Changes - The company reported second quarter revenue of $215 million, a decrease of $36 million from the same period in 2024 [15] - Gross profit was $13.4 million, an increase of $53 million from the same period in 2024, resulting in a gross profit margin of 6.2%, up from negative 15.9% in the prior year [15][16] - The company reported a net loss of $10.3 million or $0.19 per share, compared to a net loss of $46 million or $0.96 per share in the same period last year [17] - EBITDA for the quarter was $4.2 million, compared to negative $49.9 million for the same period in 2024 [17] Business Line Data and Key Metrics Changes - The Civil segment had revenues of $81.5 million, an increase from $79.4 million in the same period in 2024, with a gross profit of $14.6 million and a gross profit margin of 17.9% [18] - The Transportation segment reported revenues of $133.9 million, a decrease of $38.3 million from the same period in 2024, with a gross loss of $1.2 million, improving from a gross loss of $49.2 million in the prior year [19] - The Materials and Paving business line contributed $21.7 million to revenue, with a remaining backlog of approximately $99 million, down from $139 million at the end of the last quarter [19][20] Market Data and Key Metrics Changes - The company noted strong demand driven by federal funding, particularly from the Infrastructure Investment and Jobs Act (IIJA), which is expected to provide a tailwind for the business for several more years [10][11] - State and local governments are developing long-term plans to address infrastructure needs, with significant investments such as the Texas Senate's resolution to allocate $20 billion for water infrastructure projects [11] Company Strategy and Development Direction - The company is focused on high-quality, high-margin work and is selectively adding new projects while winding down legacy work [12][13] - The strategy includes maintaining strong financial discipline and improving profitability over top-line growth [13][14] - The company aims to convert its new core backlog into profitable results and create long-term value for stakeholders [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustained investment and robust demand for infrastructure, particularly from federal and state governments [10] - The company anticipates that legacy projects will have less impact on overall results as they continue to wind down these projects [21] - Management expects civil margins to remain in the mid-teens and is optimistic about the long-term potential of both the Civil and Transportation segments [28][39] Other Important Information - The company added approximately $67 million in new awards during the quarter, bringing the total backlog to approximately $2.3 billion [9][21] - The company expects to burn approximately 41% of its backlog over the next twelve months [21] Q&A Session Summary Question: Are the new project opportunities more weighted towards the second half of the year or 2026? - Management indicated excitement about the second half and a strong pipeline, with expectations for continued demand [26] Question: How do civil margins trend in the second half of the year? - Management expects civil margins to remain strong, with long-term expectations in the mid-teens [28] Question: What is the outlook for operating cash flow in the back half of the year? - Management anticipates a pickup in operating cash flow in Q3 and Q4 due to the peak construction season [30] Question: Can you elaborate on the higher margin short duration work? - Management sees significant opportunities in the civil market and expects this trend to continue [35][36] Question: What is the target operating margin range for the company beyond 2026? - Management is optimistic about increasing margins and expects mid-teen civil margins and low-teen transportation margins in the near future [39] Question: What is the revenue impact from weather on each segment? - Management noted that while weather impacts were present, they expect revenue to normalize in the back half of the year [66]